{"id":23839,"date":"2025-09-11T08:23:06","date_gmt":"2025-09-11T08:23:06","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=23839"},"modified":"2025-09-11T08:23:06","modified_gmt":"2025-09-11T08:23:06","slug":"dollar-index-steadies-before-cpi-release","status":"publish","type":"post","link":"https:\/\/www.vtmarkets.com\/pl-eu\/analysis\/dollar-index-steadies-before-cpi-release\/","title":{"rendered":"Dollar Index steadies before CPI release"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-1024x536.png\" alt=\"\" class=\"wp-image-23842\" srcset=\"https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-1024x536.png 1024w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-300x157.png 300w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-768x402.png 768w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-500x262.png 500w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-400x209.png 400w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-350x183.png 350w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4-200x105.png 200w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/USA-4.png 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The US dollar is navigating a mix of economic and political pressures. Softer inflation data has lifted hopes of interest rate cuts, but uncertainty around the Federal Reserve\u2019s independence and upcoming economic releases means the outlook remains finely balanced.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Cooling PPI fuels Fed cut bets<\/strong><\/h2>\n\n\n\n<p>The US dollar found stability during Asian trading hours, supported by softer inflation data and growing anticipation of rate cuts from the Federal Reserve.<\/p>\n\n\n\n<p>As of 08:47 GMT, the US Dollar Index (DXY) was at 97.831, showing an increase of 0.147 points or 0.15%.<\/p>\n\n\n\n<p>This marked a third straight session of gains, following earlier weakness this month. The turning point came after the Bureau of Labor Statistics reported that the Producer Price Index (PPI) for final demand slipped 0.1% in August, compared with a downwardly revised 0.7% rise in July.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">A stalling labor market points to slower growth ahead in the US. A drop in stock prices on this reality would be a buying opportunity, @edwarnh argues, as long as a recession isn&#39;t on the horizon <a href=\"https:\/\/t.co\/5FNRZJgyk8\">https:\/\/t.co\/5FNRZJgyk8<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1965832252513751510?ref_src=twsrc%5Etfw\">September 10, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The softer print strengthened expectations of policy easing, with markets now viewing a 25-basis-point cut at the Fed\u2019s 16-17 September meeting as highly likely.<\/p>\n\n\n\n<p>Futures markets are even <a href=\"https:\/\/finance.yahoo.com\/news\/why-a-fed-rate-cut-might-not-help-the-stock-market-080026277.html\" target=\"_blank\" rel=\"noopener nofollow\" title=\"assigning close to a 9% probability\">assigning close to a 9% probability<\/a> to a larger 50-basis-point cut, underlining the dovish sentiment.<\/p>\n\n\n\n<p>Still, traders remain cautious ahead of today\u2019s US Consumer Price Index (CPI) release. Any upside surprise could temper expectations for deeper monetary easing and reverse recent dollar strength.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Political turbulence challenges Fed independence<\/strong><\/h2>\n\n\n\n<p>Alongside economic data, political manoeuvres in Washington are injecting uncertainty into the Fed outlook.<\/p>\n\n\n\n<p>The Trump administration is seeking to dismiss Federal Reserve Governor Lisa Cook, despite a court ruling temporarily blocking the move.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Trump administration appeals ruling blocking removal of Fed Governor Cook <a href=\"https:\/\/t.co\/ISAE8BhJDx\">https:\/\/t.co\/ISAE8BhJDx<\/a> <a href=\"https:\/\/t.co\/ISAE8BhJDx\">https:\/\/t.co\/ISAE8BhJDx<\/a><\/p>&mdash; Reuters (@Reuters) <a href=\"https:\/\/twitter.com\/Reuters\/status\/1965981130013704385?ref_src=twsrc%5Etfw\">September 11, 2025<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p><\/p>\n\n\n\n<p>The White House\u2019s push to reshape the central bank\u2019s leadership before the September policy meeting has raised concerns about political interference.<\/p>\n\n\n\n<p>Meanwhile, Trump-backed nominee Stephen Miran cleared the Senate Banking Committee and is edging closer to confirmation, though it remains unclear if the process will conclude before the upcoming decision.<\/p>\n\n\n\n<p>Even partial politicisation of the Fed could undermine confidence in its independence, potentially weighing on long-term dollar sentiment and market stability.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Technical analysis<\/strong><\/h2>\n\n\n\n<p>The Dollar Index is trading at 97.83 (+0.15%), but it remains in a broader downtrend from February\u2019s 2025 peak of 108.39.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"453\" src=\"https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1.jpeg\" alt=\"\" class=\"wp-image-23841\" srcset=\"https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1.jpeg 1024w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1-300x133.jpeg 300w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1-768x340.jpeg 768w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1-500x221.jpeg 500w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1-400x177.jpeg 400w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1-350x155.jpeg 350w, https:\/\/www.vtmarkets.com\/pl-eu\/wp-content\/uploads\/sites\/21\/2025\/09\/image-14-1024x453-1-200x88.jpeg 200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Picture: Dollar Index steady near 97.83, consolidating between 96.00 support and 99.00 resistance on the <a href=\"https:\/\/apps.apple.com\/au\/app\/vt-markets-online-trading\/id1372647263\" target=\"_blank\" rel=\"noopener\" title=\"VT Markets app\">VT Markets app<\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>After touching a yearly low of 95.97 in July, the index has recovered modestly yet still struggles to regain the 100 threshold \u2013 evidence of ongoing selling pressure.<\/p>\n\n\n\n<p>Short-term moving averages (5, 10, and 30) are flat, signalling indecision, while the MACD hovers near zero, pointing to subdued momentum.<\/p>\n\n\n\n<p>Key support lies at 96.00, with a break lower exposing July\u2019s trough. On the upside, resistance is located at 99.00 and 101.00 \u2013 levels that bulls need to reclaim to shift sentiment decisively.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\"><strong>Cautious forecast<\/strong><\/h2>\n\n\n\n<p>In the near term, the Dollar Index is likely to trade within a narrow 97.50\u201398.00 range as markets digest incoming inflation figures and policy signals from the Fed.<\/p>\n\n\n\n<p>A stronger-than-expected CPI release could push the index towards 98.30, while dovish rhetoric or political headwinds from Washington may cap gains quickly.<\/p>\n\n\n\n<p>Looking further ahead, the Fed\u2019s policy stance and the Trump administration\u2019s continued pressure on central bank governance will remain the key drivers.<\/p>\n\n\n\n<p>One or two rate cuts by year-end \u2013 if managed without unsettling forward guidance \u2013 could keep the dollar steady near present levels.<\/p>\n\n\n\n<p>However, intensified political interference or deeper disinflation risks might send the index back towards 96.00 in the final quarter.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>Click <a href=\"https:\/\/www.vtmarkets.net\/trade-now\/?utm_campaign=account_c&amp;utm_source=dma&amp;utm_medium=website\" target=\"_blank\" rel=\"noopener\" title=\"here\">here<\/a> to open account and start trading.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The US dollar is navigating a mix of economic and political pressures. Softer inflation data has lifted hopes of interest rate cuts, but uncertainty around the Federal Reserve\u2019s independence and upcoming economic releases means the outlook remains finely balanced. Cooling PPI fuels Fed cut bets The US dollar found stability during Asian trading hours, supported <a href=\"https:\/\/www.vtmarkets.com\/pl-eu\/analysis\/dollar-index-steadies-before-cpi-release\/\" class=\"read-more\">Continue Reading<\/a><\/p>\n","protected":false},"author":102,"featured_media":23842,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[],"class_list":["post-23839","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/posts\/23839","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/comments?post=23839"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/posts\/23839\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/media\/23842"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/media?parent=23839"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/categories?post=23839"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/pl-eu\/wp-json\/wp\/v2\/tags?post=23839"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}